The reported index numbers are based on data compiled from quarterly surveys of NMHC members. Survey responses reflect the change, if any, from the previous quarter. The indexes are standard diffusion indexes, hence are convenient summary measures showing the prevailing direction and scope of changes. They are calculated by taking one-half the difference between positive (tighter markets, higher sales volume, equity financing more available, a better time to borrow) and negative (looser markets, lower sales volume, equity financing less available, a worse time to borrow) responses and adding 50. This produces a series bounded by 0 (if all respondents answered in the negative) and 100 (if all respondents answered in the positive).

1 A Market Tightness Index reading above 50 indicates that, on balance, apartment markets around the country are getting tighter; a reading below 50 indicates that market conditions are getting looser; and a reading of 50 indicates that market conditions are unchanged.

2 A Sales Volume Index reading above 50 indicates that, on balance, sales volume and the country is increasing; a reading below 50 indicates that sales volume is decreasing; and a reading of 50 indicates that market conditions are unchanged.

3 An Equity Financing Index reading above 50 indicates that, on balance, equity finance is more available; a reading below 50 indicates that equity finance is less available; and a reading of 50 indicates that equity finance availability is unchanged.

Question #1: How are apartment market conditions in the local markets that you watch? “Tight” markets are defined as those with low vacancies and high rent increases. Conditions obviously vary greatly from place to place, but on balance, apartment market conditions in your markets today are:

July 2018

April 2018

January 2018

Tighter than three months ago

20%

14%

14%

Looser than three months ago

29%

38%

42%

About unchanged from three months ago

50%

47%

42%

Don’t know or not applicable

1%

1%

2%

Question #2: What about sales of apartment properties in the local markets you watch? The sales volume (number of deals) currently is:

Question #4: What about the conditions for multifamily mortgage borrowing? Considering both interest rates and non-rate terms, compared to three months ago:

July 2018

April 2018

January 2018

Now is a better time to borrow

27%

10%

11%

Now is a worse time to borrow

17%

37%

36%

About unchanged from three months ago

49%

44%

45%

Don’t know or not applicable

7%

9%

8%

Question #5: There has been considerable talk about a shortage of construction labor in the apartment industry (as well as others). Based on the markets you are familiar with, how does construction availability compare with one year ago:

Excluding "Don't Know"

About the same

16%

18%

Less available at last year's compensation levels, but about the same availability at higher compensation levels

25%

28%

Less available even with higher compensation levels

48%

54%

Don't know or not applicable

11%

N/A

Note: The July 2018 Quarterly Survey of Apartment Market Conditions was conducted July 9-April 18, 2018; 98 CEOs and other senior executives of apartment-related firms nationwide responded. The April 2018 Quarterly Survey of Apartment Market Conditions was conducted April 9-April 16, 2018; 130 CEOs and other senior executives of apartment-related firms nationwide responded. The January 2018 Quarterly Survey of Apartment Market Conditions was conducted January 16-January 23, 2018; 144 CEOs and other senior executives of apartment-related firms nationwide responded.